Equity release could help millions of asset-rich cash-poor homeowners
Equity release could take around 1.6 million pensioners out of poverty by 2040, according to a recent report from provider Just Retirement.
There remains a high degree of concern surrounding retirement funding; depleted savings and poor returns from annuities as well as increasing fuel bills and care costs all having a significant impact on a retiree’s finances.
While solutions for reduced retirement incomes are currently being sought, equity release professionals are keen to demonstrate the existing advantages of such products.
Allowing a homeowner to release funds from their property whilst retaining the right to live there, equity release can be a viable funding tool for many retirees. In fact more and more homeowners aged 55 and over are seeing the benefit of equity release; the number of plans released in 2012 increased by 10 per cent.
Richard Espley is the Head of Equity Release at Goldsmith Williams:
“We are seeing an increased number of homeowners who, having bought property 20, 30 years ago, now find themselves asset rich. However in many cases this is not translating into people’s everyday finances.
“Through equity release these struggling homeowners can unlock some of the value of these assets. A decision which, as these latest figures highlight, could help so many people enjoy a much more comfortable retirement.”
Content correct at time of publication